July 23 (Bloomberg) -- British Airways Plc's program that allows customers to offset carbon dioxide emissions from their flights is ``risible,'' a committee of U.K. lawmakers said.

The plan allows passengers to pay for renewable energy and rainforest restoration projects that may mitigate the effects of emissions of the gas, blamed by the United Nations for the bulk of global warming. Started with ``fanfare'' in 2005, the program's profile has since been ``almost non-existent,'' the House of Commons Environmental Audit Committee said today in an e-mailed report.

``British Airways has encouraged the purchase of only 1,600 tons of offsets on average each year, approximately the emissions from four return flights to New York on a 777,'' the committee said in a 66-page report on the voluntary offsetting market. ``This is risible.'

Airlines are due to be included in 2011 in European Union regulations restricting emissions by 11,500 factories and mines across the bloc. The airline industry ``must consider itself duty-bound to develop robust and effective policies with regard to offsetting,'' the report said.

``Customer response has not been as strong as we would have hoped,'' British Airways said today in an e-mailed statement. The airline said it's changing the way the program works and expects the improvements to take effect ``in the near future.''

The airline also said that its 400 million-pound ($823 million) share of the government's tax on air travel, known as air passenger duty, could be used to offset the company's emissions four times over.

`Further to Go'

BA has tried to promote its green credentials, lobbying for years for airlines to be included in the carbon emissions credits trading program associated with the EU caps. Willie Walsh, the airline's chief executive officer, said last week that the environment remains at the top of the company's agenda, and that while ``a great deal of progress'' has been made in improving fuel efficiency, ``there is much further to go.''

``Despite the occasional claims of one or two people in this industry, there is no magic solution to the issue of aviation and climate change,'' Walsh said July 17 at the company's annual general meeting. ``Flying jet aircraft produces carbon dioxide, the main greenhouse gas. This is a fact of scientific life, whether we like it or not.''

Virgin Atlantic Airways Ltd., the airline founded by U.K. billionaire Richard Branson, currently offers no offsets, though it plans to begin doing so later this year, according to the report. A third airline, Silverjet Plc, was praised by the committee for bearing the cost of its offsets, rather than leaving the decision up to its passengers.

``Silverjet is to be congratulated for its stance towards its own emissions, although the scale of its operations makes such integral offsetting more practicable than is the case for its larger competitors,'' the panel said.

The cross-party committee recommended that the government set up a regulatory body to vet companies that arrange for carbon offsets and ensure that emissions reductions are achieved by the offsetting projects.

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net.

Last Updated: July 23, 2007 04:42 EDT